1. Viewing skills ① Stick to the monthly line viewing strategy. View the monthly line, operate based on the weekly line. This is the highest level of stock trading. In stock trading software, the time cycles of candlestick charts vary in length: long-term is yearly and monthly, short-term is weekly, daily, and intraday. Practice has proven that using technical indicators to view trends, the longer the time cycle, the easier it is to determine trends. Weekly lines are easier to judge than daily and intraday. Monthly lines are easier to judge than weekly lines. Monthly line technical indicators reflect major trends and large cycles; weekly line technical indicators reflect medium trends and medium cycles; daily and intraday indicators reflect minor trends and small cycles. Relying on weekly line technical indicators for stock selection and operation, there are only a few turning points for individual stocks in a year. When you can see clearly, it's effortless and accurate, with a high success rate and possibility of making big profits. Trading according to the monthly line = trend trading. In stock trading, grasp the trend of individual stocks, go with the trend, learn and adhere to decisions based on monthly and weekly lines, avoid decisions based on daily lines, as the probability of error is higher when using small indicators, the smaller the indicator, the more frequent the decision-making within the same period, the more frequent the decision-making, the more errors likely to occur. Only by letting go of small things can you aim for bigger returns. Operating a few times a year based on profitability can achieve a 50% return. The monthly line indicator for individual stocks is gold. The way to simplicity leads to greatness.
② Stick to the weekly line operation strategy. Buy stocks with a positive signal from the weekly line indicator, sell stocks with a negative signal from the weekly line indicator. Using indicators such as weekly line KDJ for operations results in high accuracy. ③ Stick to the right-side trading strategy. Right-side trading is in contrast to left-side trading, where left-side trading does not look at technical indicators, subjectively predicts, does not buy stocks until reaching the bottom, and does not sell stocks until hitting the top. Right-side trading involves entering and exiting the market only after turning points occur in stock price and technical indicators. Right-side trading means trading at turning points, winning at turning points, and following the trend when it truly breaks through. Achieve a 'selfless' state, accept instructions like a robot, analyze charts, operate in a simple manner, have faith in the role and power of technical indicators, and insist on relying on monthly line technical indicators to select high-quality individual stocks. Few but quality selections. Purchase when the monthly line indicator turns positive, sell when the monthly (weekly) line indicator turns negative, accurately grasp the buying and selling points. Believe in technical indicators for all decisions, engage in swing trading, buy low, sell high, set profit and stop-loss limits. If a few stocks you bought don't rise and indicators turn downward, then resolutely stop losses and close positions.
2. Signs that a new wave of market trends is about to start Some say to rely on KDJ golden cross and death cross, have you ever been tricked by market makers until you were spitting blood? Some say to rely on fundamentals. In fact, prices only fluctuate around value, with unpredictable amplitudes and cycles. Do you have enough capital? Have you always adhered to value investing? Have you held onto a stock for several years or even several decades? Many are just pseudo-value investors. Now let me teach you a set of invaluable short-term sniper techniques! 1. Target operation: Medium and small cap stocks with a circulating share capital between 50 million and 0.5 billion, with stock prices between 5 and 20, and positive earnings per share. Reference tools: MACD, KDJ, MA.
Buying conditions: ① After a continuous two to three days of decline in the stock, a significant downtrend is formed on the 15-minute K-line; ② The DIF line of the 15-minute MACD shows a bottom divergence, or the 15-minute KDJ shows a golden cross below 20 or dullness; ③ At the same time, the DIF line of the 60-minute MACD is flat and turns upward; ④ The 60-minute K-line chart stands above the 5-hour MA, the 5-hour MA is flat and begins to turn upward.
Selling conditions: ① The DIF line of the 15-minute MACD shows a top divergence, or the 15-minute KDJ shows a death cross above 80 or dullness; ② At the same time, the DIF line of the 60-minute MACD is flat and shows a downward trend; ③ The 5-hour MA of the 60-minute K-line chart deviates. Breakdown below 80; ② At the same time, the DIF line of the 60-minute MACD is flat and shows a downward trend; ③ Failure of the 5-hour MA on the 60-minute K-line chart.
Timing of taking action: ① In a weak market, it is advisable to buy stocks more in the afternoon and avoid situations where the second day is a weekend or other statutory holidays; ② Analyze the market according to buying and selling conditions for the large cap index, strive for short-term cooperation with the market rebound, the success rate will be higher; ③ Enter and exit quickly, never hesitate, even if not profitable, decisively exit.
Based on the strength of the rebound, this perfect combination of 60-minute and 15-minute cyclical theories can be transferred to the 60-minute and daily chart or even longer-term daily and weekly chart combination, which is extremely powerful.
III. Four elements of short-term stock selection: ① Choose stocks that stabilize after a sharp decline but without any particularly bearish news. ② Stocks that habitually hit the limit up, based on the trend of frequent limit up or continuous limit up in the previous period. ③ Stocks with a significant increase in volume in recent days. ④ Select stocks with policy bullishness as much as possible, supported by technology, and have not experienced a large increase.
Volume ratio is an indicator that measures the relative trading volume. It is the ratio of the total trading volume at the current time to the average trading volume per minute over the past 5 trading days. Volume ratio = current total trading volume / (average trading volume per minute over the past 5 days × cumulative trading time on the current day (minutes)). An effective analytical tool for observing trading volume is volume ratio, which compares the trading volume of a particular stock at a certain point in time with the average trading volume over a period of time, excluding the incomparable situations caused by different share capital, and is an important indicator for detecting changes in trading volume. In terms of time parameters, it is common to use a 10-day average volume, and there are also instances where a 5-day average value is used.
① Generally speaking, if the volume ratio on a certain day is between 0.8-1.5 times, it indicates that the trading volume is at a normal level; ② If the volume ratio is between 1.5-2.5 times, it is considered moderate volume expansion. If the stock price is also in a mild rising state, then the upward trend is relatively healthy and can continue to be held. If the stock price falls, it can be considered that the downward trend is unlikely to end in the short term, and exiting with a stop loss can be considered based on the volume perspective; ③ If the volume ratio is between 2.5-5 times, it is considered obvious volume expansion. If the stock price breaks through important support or resistance levels accordingly, the likelihood of a breakthrough is quite high, and corresponding actions can be taken; ④ If the volume ratio reaches 5-10 times, it is considered as intense volume expansion. If a particular stock appears to break through with intense volume expansion when the stock is in a long-term low position, the subsequent upward potential is huge, symbolizing unlimited profitability. If a stock with a volume ratio exceeding 10 times appears in an upward trend, it is generally advisable to consider taking a contrarian approach. When this situation occurs during an upward trend, it indicates a high likelihood of a peak, even if it is not a complete reversal, the upward trend will likely consolidate for a considerable period of time.
In the later stage of a consistent downward trend in stocks, a sudden significant volume ratio indicates that the stock has completely released the downward momentum at its current position. Cases where the volume ratio exceeds 20 times occur almost daily, showing an extreme volume expansion, with a particularly strong reversal significance. If after a continuous rise, the trading volume significantly increases but the stock price shows a 'stagnant rise,' it is a strong signal of an impending end to the upward trend. When a particular stock exhibits extreme volume expansion during a downturn, it is an excellent opportunity to establish a position.
Volume ratio below 0.5 times also deserves close attention. Serious contraction in volume not only indicates inactive trading but also hides certain market opportunities. Stocks with high volume contraction often belong to institutions with a long position. Contraction creating new highs indicates strong control by major players and eliminates the possibility of distribution at high prices. Stocks that adjust with volume contraction, especially those that break through a critical resistance level with increased volume and then retract with reduced volume, are often rare buying opportunities. For stocks hitting the daily limit-up, with a volume ratio below 1, the upside potential is unlimited, and the possibility of hitting the limit-up the next day is extremely high. In the case of daily limit-down, the smaller the volume ratio, the more it suggests that the selling momentum has not been effectively dissipated, indicating significant downside potential. When the volume ratio is greater than 1, it means that the average trading volume per minute on the current day is higher than the average value over the past 5 days, indicating more active trading compared to the past 5 days; when the volume ratio is less than 1, it means that the trading volume on the current day is lower than the average level over the past 5 days.
The Four Steps for Selecting Stocks During Trading: Step One: After the auction ends, rank the volume ratios and focus on the top 30 rankings with price increases of 4% or less; Step Two: Choose stocks with relatively small circulating share capital, preferably below 0.5 billion shares; Step three: Select stocks that have had a turnover ratio below 3% for several consecutive days or an average turnover ratio below 3% for several days. Step four: Select individual stocks that have had relatively balanced trading volumes for several days or have shown the phenomenon of limit-up without volume in the past, excluding stocks that have not had any limit-ups. Step five: It is best to choose stocks that the individual has previously operated and is relatively familiar with for intervention.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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OPPeter YCS
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Policy impact on foreign investment is unavoidable that the HSI itself is on the edge of a turbulent US dollar more fire more full of investment buy index words much attention.
Cuter OP Peter YCS : Policy impact on foreign investment is unavoidable that the HSI itself is on the edge of a turbulent US dollar more fire more full of investment buy index words much attention.
Peter YCS : It falls early in the morning, it will be better in the afternoon